Q7 Bob Equipment Rental paid $64 in dividends and $517 in interest expense. The addition to...
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Q7 Bob Equipment Rental paid $64 in dividends and $517 in interest expense. The addition to retained earnings is $327 and net new equity is $400. The tax rate is 27%. Sales are $14,900 and depreciation is $570. What are the earnings before interest and taxes? Hint IF EBT minus (27% taxes)= Net Income Then Net Income/.27% = EBT Sales -Costs -Depreciation =EBIT -Interest = EBT Tax Rate -Taxes (EBT x tax rate) =Net Income -dividends paid =add to RE 27% Q7 Bob Equipment Rental paid $64 in dividends and $517 in interest expense. The addition to retained earnings is $327 and net new equity is $400. The tax rate is 27%. Sales are $14,900 and depreciation is $570. What are the earnings before interest and taxes? Hint IF EBT minus (27% taxes)= Net Income Then Net Income/.27% = EBT Sales -Costs -Depreciation =EBIT -Interest = EBT Tax Rate -Taxes (EBT x tax rate) =Net Income -dividends paid =add to RE 27%
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